Every business registered in the UAE must conduct an audit by following UAE laws to generate revenues. It verifies the books of records, due taxes and claimed refunds and many more other financial or non-financial matters. There are multiple types of audit such as Internal audit, external audit, Statutory audit, excise tax audit, Financial audit, VAT audit, Operational audit, Compliance audit, Information system audit, and Payroll audit. Due to multiple audit services in UAE, sometimes business owners get confused in choosing the best auditing services in Dubai. Here we are going to reveal all of the key factors that help you in the selection of a quality auditing service that suits your business needs.
Is Audit is Obligatory in the Middle East?
The Commercial Company law in the United Arab Emirates defines that it is mandatory for all registered businesses to maintain their financial records for at least 5 years and do an annual audit. The companies operating in Free Zones and on the Mainland must audit their accounts. Federal law no.2 of 2015, Article 27 stated that each company outsources authorized auditing services in Dubai. Under the Ministry of Finance, if an entity fails to submit keep its records as per UAE auditing standards then it has to pay hefty amounts of fines. That is why it is obvious for business owners to prepare and submit audit reports to the relevant authorities. It will take just 3 to 6 months to prepare the audit after the end of the financial year.
Main Purpose of Audit Services
Providing audit services in Dubai means verifying that all company financial matters are in compliance with UAE laws. The following are the purposes of audit services.
- Report the actual financial situation of a business.
- Identify vulnerable risks in management and finances.
- Reduce the cost of capital for the entity.
- Examine the profit and loss statements.
- Recommendations for accounting solutions.
- Attesting records under GAAP and IFRS.
Selection Criteria for Right Audit Firms in UAE
Those looking for quality auditing services in Dubai, Abu Dhabi, Sharjah, and other Emirates must consider these essential factors. Below we will discuss the criteria for selecting the right audit firm in UAE.
1- Qualifications & Certifications of Auditors
When you are acquiring an audit service in UAE, you must verify the qualification and certification of auditors. The auditors should be verified Certified Public Accountants (CPA) and Certified Financial Analysts (CFA). They should also possess in-depth knowledge of the required auditing type. You may visit the official website of the audit firm to go through their certifications, awards, and achievements. This proactive approach to selection gives you many monetary and non-monetary benefits in the future.
2- Licensed Audit Firm
This is the most significant selection criteria for accounting and auditing services in Dubai. You must ensure that the audit firm is a commercial entity located in the UAE, licensed to perform auditing services. Additionally, select the audit firm whose accounts are legally authorized by the Ministry of Economy.
3- Committed to Quality Assurance
Auditor selection should be based on their commitment to quality assurance. Their audit services in Dubai must comply with all regulatory requirements, approved auditing standards, and reporting requirements. They must attest all company documents and verify its financial position. Insights into the audit procedure before the contract is beneficial for both parties.
4- Utilize Advanced Softwares
Always choose an audit firm in UAE that is technically proficient and utilizes advanced data analytics to perform auditing. They must access the latest accounting software to efficiently manage their books of record. This future optimistic action improves the efficacy of auditing procedures. You should not overlook this phenomenal feature when opting for an audit service in Dubai.
5- Examine Top Audit Firms in UAE
While selecting auditing services in UAE, you must consider the top of licensed auditors and accountants. Nowadays, search engines provide comprehensive information about the top-notch service providers in this field. Also, you can go through the top 5 audit firms in UAE and select the finest one.
6- Reasonable Auditing Charges
The fee is often a deciding factor when it comes to choosing an auditor. It is advisable that you select the one who offers an adequate fee for financial audit services in Dubai, UAE. But didn’t compromise on the quality of auditing. They certify that all operations and procedures are comply with the UAE Commercial Law. Auditors have to adhere to regulatory requirements within budget constraints.
7- Relevant Industry Experience
An auditor with experience within your industry will be able to provide valuable services. You may ask the consultants about the experience of the team, did they work in the relevant industry, and what are the auditing results in the past? This is the proactive approach to an efficient and successful audit.
Benefit of Outsourcing Auditing Services in Dubai
As we know, outsourcing auditing services in UAE, is compulsory for all registered businesses. Below we will discuss how an audit firm can benefit you:
1- Providing Support for Decision-making & Growth
A financial audit can add value to your business decision-making. You can depend on a good auditor to be your business’s advisor throughout the year. It not only fulfills the regulatory requirements but also opens up new growth opportunities for your company. As a business partner, your auditor should provide you with deep analysis, assurance, and future-oriented business advice.
2- Enhance the Credibility of SMEs
Those who benefit most from the right auditing services in Dubai, are small-medium enterprises. Startups and small businesses are looking forward to bank loans to optimize profits. But the credits are just allowed who prove their accounts as compliance with UAE laws. The accurate financial records help them to enhance their credibility in front of regulatory authorities.
3- Financial Risk Analysis
Expert auditors can detect financial risks in the existing system of the company. They will do a complete feasibility analysis by performing a comprehensive audit service in UAE. An audit report considerably reduces financial risks.
4- Restructuring Workflows through Anticipation
Quality auditing services not only verify the company records but also assist in financial restructuring and other accounting procedures. Picking the right auditing services in UAE can benefit you in multiple ways.
BestaxCA: A Leading Auditing Firm in Dubai
BextaxCA is an expert and renowned auditing and financial consultancy having an association with auditing firms in Dubai. It is committed to providing exclusive accounting and audit services to all of its domestic and international clients. IFRS-compliant audits are performed by auditors who have the expertise, experience, and deep knowledge. They will solve all your problems regarding finding the right audit services in UAE.
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